The European Union on Tuesday said planned tariffs on Tesla vehicles being imported from China would be cut to 9% from 20.8%, while also reducing a number of planned import duties on other electric vehicle firms.<\/p>\n
In June, the E.U. said it would slap higher tariffs on Chinese electric vehicle imports, which it found benefit \u201cheavily from unfair subsidies\u201d and pose a \u201cthreat of economic injury\u201d to EV producers in Europe.<\/p>\n
The European Commission, the executive arm of the E.U., announced a preliminary conclusion that the battery-electric vehicles value chain in China \u201cbenefits from unfair subsidisation\u201d and pronounced that it is in the E.U.\u2019s interest to impose \u201cprovisional countervailing duties\u201d on BEV imports from China.<\/p>\n
The E.U. Commission disclosed on Tuesday its draft decision to \u201cimpose definitive countervailing duties on imports of battery electric vehicles (BEVs) from China.\u201d<\/p>\n
The regulatory body said that after receiving comments from interested parties on its planned tariffs, it would make a \u201cslight adjustment of the proposed duty rates based on substantiated comments on the provisional measures.\u201d<\/p>\n
Electric vehicles made by Tesla in China will now face duties of 9% on imports to the E.U. That is down from an anticipated rate of 20.8%, which the E.U. signposted in an earlier decision in July.<\/p>\n
Tesla shares rose more than 1% in U.S. morning trading following the E.U.\u2019s draft decision.<\/p>\n
The E.U. said it made the decision to grant Tesla its own lowered individual duty rate as an exporter from China.<\/p>\n
It comes after Elon Musk\u2019s electric vehicle maker made a \u201csubstantiated request\u201d to the E.U. that planned tariffs on its China-made EVs be recalculated to reflect specific subsidies the company receives in China.<\/p>\n
Tesla was not immediately available for comment when contacted by CNBC on Tuesday.<\/p>\n
BYD, the Warren Buffett-backed EV firm, saw its tariff rate reduced from 17.4% to 17%; Geely from 19.9% to 19.3%, SAIC from 37.6% to 36.3%. BYD, Geely and SAIC did not immediately respond to a request for comment outside of working hours in China.<\/p>\n
Other companies cooperating with the E.U. in its investigation into China\u2019s heavy subsidization of EVs, will face tariffs of 21.3%, the commission said. This is higher than the 20.8% rate cooperating companies would have faced under the E.U.\u2019s previous July decision.<\/p>\n
For those not cooperating, they will be slapped with 36.3% import duties. That is down from 37.6% previously.<\/p>\n<\/p>\n
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